Puerto Vallarta, Jalisco – The United States Department of the Treasury, through the Office of Foreign Assets Control (OFAC), has sanctioned three Mexican accountants and four Mexican companies in connection with a widespread timeshare fraud scheme orchestrated by the Jalisco New Generation Cartel (CJNG). This illicit operation, primarily targeting American citizens, is facilitated through call centers.
The sanctioned accountants are two women and one man, operating in Puerto Vallarta on behalf of the CJNG. They are identified as Griselda Margarita Arredondo Pinzón, Xeyda del Refugio Foubert Cadena, and Emiliano Sánchez Martínez. Arredondo Pinzón, 34, is notably the half-sister of Julio César Montero Pinzón, alias ‘El Tarjetas,’ a CJNG member sanctioned by OFAC on June 2, 2022, according to Infobae.
Xeyda del Refugio Foubert Cadena, sister of Manuel Alejandro Foubert Cadena, also sanctioned by OFAC on November 30, 2023, is married to Emiliano Sánchez Martínez, 43, who has similarly been sanctioned. The companies affected by these sanctions include Constructoras Sandgris S. de RL de CV, Pacific Axis Real Estate, SA de CV, Realty & Maintenance BJ, SA de CV, and Bona Fide Consultores FS SAS, all directly linked to the aforementioned accountants.
The Mechanics of Timeshare Fraud
Timeshare fraud, as outlined by the Mexican Association of Tourist Developers (AMDETUR), involves the deceptive marketing of properties intended for tourist accommodation during vacation periods. This system allows buyers to use properties such as villas, apartments, or hotel suites during specified times each year, with maintenance and usage costs shared among buyers. This arrangement is particularly appealing to U.S. citizens seeking holiday properties in tourist hotspots.
From 2019 to 2023, the FBI reported that approximately 6,000 Americans fell victim to this fraud in Mexico, resulting in losses estimated at USD 300 million. Scammers typically contact victims by phone, posing as timeshare brokers or real estate sales representatives. They persuade victims to rent properties in exchange for advance payments, ostensibly for commissions and taxes. However, the property offers turn out to be fictitious.
CJNG’s Role and the Sanctions
The CJNG has primarily utilized this fraud scheme in Puerto Vallarta, one of its operational strongholds. OFAC’s sanctions aim to dismantle the CJNG’s infrastructure and disrupt its financial flow. In addition to the accountants and companies mentioned, other CJNG members, such as Carlos Andrés Rivera Varela, alias ‘La Firma,’ and Francisco Javier Gudiño Haro, alias ‘La Gallina,’ have also been sanctioned for their involvement in similar fraudulent activities.
The collaboration between the U.S. Treasury and OFAC is crucial in combating the CJNG, one of Mexico’s most powerful criminal organizations. The sanctions, implemented under the Foreign Narcotics Kingpin Designation Act, target both individuals and legal entities associated with CJNG. These measures aim to protect U.S. citizens from falling prey to timeshare fraud.
Impact on Victims and the Local Economy
American tourists, lured by the prospect of owning vacation properties at a shared cost, are the primary victims of timeshare fraud. This scheme has become a lucrative operation for the CJNG, diversifying its illicit activities to maximize profits. AMDETUR promotes the legal marketing of tourist real estate, striving to protect consumers from fraudulent practices.
The economic impact of timeshare fraud on local economies can be substantial, undermining confidence in the tourism sector and real estate investments. International cooperation and U.S. Treasury sanctions are essential in the fight against organized crime, safeguarding citizens from such fraudulent schemes. These sanctions aim not only to disrupt CJNG’s financial operations but also to dismantle the support networks facilitating these illegal activities.
Puerto Vallarta, Jalisco – The United States Department of the Treasury, through the Office of Foreign Assets Control (OFAC), has sanctioned three Mexican accountants and four Mexican companies in connection with a widespread timeshare fraud scheme orchestrated by the Jalisco New Generation Cartel (CJNG). This illicit operation, primarily targeting American citizens, is facilitated through call centers.
